Press Release

Merchants Bancorp has once again been named by S&P Global Market Intelligence as the #1 Best-Performing Community Bank in the State of Indiana for 2018, #6 nationally. Rankings are based on financials year ended December 31, 2018 for banks with $3B to $10B in assets. See the rankings at S&P Global.

We are pleased to announce that Merchants Capital's own David Hines has earned HUD’s Deputy Chief Underwriter designation!  This is a tremendous accomplishment and one that takes years of hard work and dedication.  David has been with Merchants Capital since 2011.  In his experience as an underwriter, he has underwritten all types of loans from acquisition and refinance transactions, to substantial rehab and new construction.  A graduate with Highest Distinction from the Indiana University School of Business, Mr. Hines has structured over $1 billion in commercial real estate financing over his career at Merchants Capital. David Hines David's experience with complex transactions has been an invaluable resource for our underwriting staff and we celebrate his success. THANK YOU DAVID AND CONGRATULATIONS! DAVID HINESVICE PRESIDENT, FHA DEPUTY CHIEF UNDERWRITERCarmel, Indiana

CARMEL, Ind. – Merchants Capital has formally announced the promotion of Brian Sullivan to executive vice president and chief operating officer of Merchants Capital. Since stepping into this role in August 2018, Sullivan continues to lead capital markets activities, while overseeing the execution of strategic initiatives, notably the implementation of an industry-leading, custom loan origination and servicing software. Brian Sullivan Previously, Sullivan served as the vice president of Merchants Capital and Merchants Bank of Indiana – the parent company of Merchants Capital, formerly PR Mortgage and Investments. Sullivan, who has been with Merchants Bancorp since 2013, has more than a decade of experience in project management, capital markets, and correspondent loan origination. In his new role, Sullivan is responsible for oversight of production, servicing and asset management and capital markets, with a focus on building a resilient and robust platform to support the company’s growth plans. Previously, he led the capital markets group for the company and was involved with Merchants Bancorp’s mergers and acquisitions (M&A) and corporate finance groups. “We’re thrilled to promote Brian to COO and to continue to enhance our team with top talent from within,” said Michael Dury, president of Merchants Capital. “Brian has a unique background having led our capital markets desk, executing bank and mortgage company acquisitions, and helping our parent company with its public offering.  Most importantly, Brian’s leadership abilities make this a well-deserved role at Merchants Capital and we look forward to a bright future together.” Sullivan earned his MBA from the Indiana University Kelley School of Business and his bachelor’s degree from DePauw University. Sullivan is involved civically with the Build Fund, an economic development focused CDFI, LISC Indianapolis, and the Penrod Society, which supports the arts and cultural education in central Indiana.

CARMEL, IN (Dec. 27, 2018) – Mortgage banking firm Merchants Capital has secured financing for the development of a $19.7 million mixed-income workforce housing community in Rochester, Minnesota. Merchants Capital secured the loan through the first-ever Freddie Mac Non-LIHTC Forward Commitment on behalf of Real Estate Equities. Dubbed Technology Park Apartments, the 164-unit affordable housing complex will help to ease the city’s affordable housing crisis, as Rochester was recently ranked one of the lowest metropolitan statistical areas (MSAs) nationally for housing affordability by Nationwide Economics. The project closed on Sept. 5, 2018. “We appreciate the opportunity to assist in the development of this housing community and the chance to help close Rochester’s affordable housing gap,” said Michael R. Dury, president of Merchants Capital. “We were able to simplify the process with our ability to provide the construction financing through our parent company, Merchants Bank, and also offer the Freddie Mac Non-LIHTC Forward Commitment product for the long term permanent financing.” The apartments were financed through a 10-year Freddie Mac Non-LIHTC Forward Commitment loan where the interest rate was locked at the closing of the construction loan. Non-LIHTC forwards are unfunded, forward commitments for affordable housing developed by nonprofits and subsidized, rent-restricted affordable housing that for-profit developers can use for their new multifamily construction or substantial rehabilitation projects. “We are very excited to be on the forefront of developing a modern workforce housing product that is not heavily reliant on government funding sources,” said Alexander Bisanz, director of acquisitions at Real Estate Equities. “Partnering with the Greater Minnesota Housing Fund to provide low-cost, mission-driven equity – as well as structuring attractive financing with Merchants Capital – truly allowed us to get this project off the ground.” Forty percent of Technology Park Apartments will be priced affordably for individuals earning an annual income of $40,000, or 60 percent of the area’s annual median income (AMI). The Greater Minnesota Housing Fund contributed a total of $3.4 million in capital for the development of these units, which will cost renters an estimated $1,150 a month for a two-bedroom apartment. An additional 35 percent of units will be set aside for individuals earning about $55,000 a year, 20 percent below Rochester’s AMI. The remaining units will be priced slightly below the current market value, about $200-300 less than similar apartments in the area. “In all of Greater Minnesota Housing Fund’s work to create and preserve unsubsidized affordable housing, we have struggled to crack the code on the production of new affordable units without reliance on public resources. Now, as an equity partner in Technology Park, we are furthering our mission and innovating ways to increase the funding pie with new financing solutions,” said Rachel Robinson, fund manager with Greater Minnesota Housing Fund. “Going forward, Tech Park, with 164 modestly priced apartments, 66 at reduced, affordable rents, will be a pilot for further innovation in this realm.” Technology Park’s cost-efficient, smart building design achieves sufficient economies of scale to charge modest rents, meeting the needs of a range of household incomes. Today’s market financing tools are working best for luxury apartment construction, and at the other end of the spectrum, affordable apartment developments financed with federal tax credits are limited in supply. Developers have struggled to find ways to finance new construction homes that are in between: achieving modest rents for residents without government subsidy. Freddie Mac’s new Non-LIHTC Forward Commitment achieves this. “Freddie Mac’s forward commitment is helping to provide affordable housing for valued members of the Rochester, Minnesota, community who struggle to find it,” said David Leopold, vice president of targeted affordable sales & investments at Freddie Mac Multifamily. “We created Non-LIHTC Forwards for this very purpose – to provide the flexibility and certainty mission-driven investors need to finance housing for low- and very-low income families.” Technology Park Apartments will be located in Rochester, Minnesota, on the north side of Technology Drive Northwest between Valleyhigh Drive and West Circle Drive. Neighboring Benchmark Electronics to the east, Costco to the south and Crooked Pint to the west, the complex is positioned in close proximity to grocery stores and other nearby amenities.

Rebrand strengthens investment in remaining the most innovative, trusted and complete financial solutions company in the industry. CARMEL, Ind. (Nov. 1, 2018) – PR Mortgage & Investments, together with wholly owned subsidiary RICHMAC Funding, LLC (“RICHMAC”), a leading national full-service mortgage banking company, announces its rebrand to Merchants Capital. The comprehensive rebrand renews and elevates the company’s commitment to providing and servicing multifamily, senior and student housing. Merchants Capital will continue to offer all existing financial services, while investing further in brand unity and expert support for its clients. Merchants Capital and its affiliates – including Merchants Bank – will remain leaders in multifamily affordable housing finance, offering a full suite of products to affordable multifamily owners, including balance sheet, FHA, Fannie Mae and Freddie Mac. Since its inception in 1990, Merchants Capital has originated and closed more than $11 billion in loans and now services in excess of $8.2 billion. In 2017, the company closed more than $1.7 billion in new loans. As of September 30, 2018, Merchants Capital has generated $1.8 billion in new loan production. In 2017, PR Mortgage & Investments acquired RICHMAC, a national Freddie Mac Targeted Affordable Housing Seller/Servicer, Fannie Mae Multifamily Affordable Housing Lender, approved FHA multifamily lender and Ginnie Mae issuer. The seller was an affiliate of The Richman Group. “We are very proud of our unique expertise that marries the services of a bank with those of a mortgage company, as well as the market momentum and position we’ve created nationally,” said Michael F. Petrie, chairman and co-founder of Merchants Capital. “As our company continues to grow and evolve, we decided it was time for an exciting change, building on the existing Merchants brand recognition and merit.” In 2009, Merchants Capital’s parent company, Merchants Bank, reintroduced the trusted “Merchants” brand back into the financial services market. Merchants continues to be recognized as one of the top performing banks nationally by S&P Market Intelligence. “We believe there are significant growth opportunities with additional borrowers and partners across the nation. Launching this modern, unified brand signals our intention to the market and positions Merchants Capital to meet these expansion targets,” said Michael R. Dury, president of Merchants Capital. The rebrand will not affect any existing loans or delay any current or future loans in process with Merchants Capital. Multifamily lending will continue to be the core of the company’s business model, and with extensive expertise and experience, Merchants Capital will always provide customized financial services to its clients and investors.

A Letter from President Michael Dury We are excited to share the launch of our new name and brand: Merchants Capital. In 1990, we opened our doors as PR Mortgage & Investments, a mortgage banking firm specializing in multifamily housing and health care facility finance. Today, we are recognized as a premier provider and servicer of multifamily, senior and student housing. It’s important to pause and consider what else has changed over the past 28 years. Our parent company, Merchants Bank, reintroduced the trusted “Merchants” brand back into the financial services market in 2009, and Merchants continues to be recognized as one of the top performing banks nationally by S&P Market Intelligence. Additionally, in 2017, we acquired RICHMAC Funding, a national Freddie Mac Targeted Affordable Housing Seller/Servicer and Fannie Mae Multifamily Affordable Housing Lender. As our company continues to grow and evolve, we decided it was time for an exciting change. Our Merchants Capital rebrand reflects our investment in remaining the most innovative, trusted and complete financial solutions company in the industry by aligning our corporate entities with the “Merchants” name. You may be asking, “What does this change mean for my business?” Changing our name and branding to Merchants Capital does not change our commitment to providing you with the best selection of financial services. We will continue to offer all existing financial services, while investing further in brand unity and expert support for our clients. Merchants Capital and our affiliates will remain leaders in multifamily affordable housing finance, offering a full suite of products to affordable multifamily owners, including balance sheet, FHA, Fannie Mae and Freddie Mac. To our clients, employees, community and industry partners: Thank you. Thank you for growing with us and for your continued support and loyalty. We look forward to sharing this next chapter with you. Sincerely, Michael R. Dury, President

Carmel, Indiana-based PR Mortgage & Investment Corp. (“PR Mortgage”) secures financing for the development of a $28.5 million workforce housing community in Indianapolis. This unique “workforce” housing development is a joint venture between Strategic Capital Partners, LLC and Goodwill of Central & Southern Indiana. The plans include constructing 208 units comprised of studios, one- and two-bedrooms, at the southwest corner of West Michigan Street and White River Parkway, in the River West neighborhood. The project is targeted toward middle-income workers who want to live within one mile of their workplace but who can’t afford higher downtown rents. “Strategic Capital Partners is a valued client and we appreciate the opportunity to assist in the development of this housing community.  Our ability to provide construction financing through our parent company, Merchants Bank while advising on options for permanent debt at stabilization, creates a seamless process from application to closing. Riverview Apartments are a value-add to downtown Indianapolis, providing housing options for middle-income workers, contributing to the vitality of the community”, said Michael R. Dury, President of PR Mortgage. “SCP was fortunate to have such a strong partner in PR Mortgage on this complex transaction.  The team at PR showed a solutions-driven mindset leading up to closing and their execution was the lynchpin in allowing this project to move forward.  We thank them for their continued advocacy of this important development”, said John Sweet, Chief Investment Officer of Strategic Capital Partners. All the units are reserved for those with incomes between 61 percent and 120 percent of the area median income which is currently $30,000 to $60,000 annually. The development will include a fitness center, free onsite parking and outdoor amenities.

Carmel, INDIANA (07/12/2018) – Mathew M. Wambua, President of RICHMAC Funding LLC (“RICHMAC Funding”), a wholly owned subsidiary of PR Mortgage & Investment Corp. (“PR Mortgage”), has been elected to the Board of Trustees of The Metropolitan Museum of Art representing the borough of the Bronx. Mr. Wambua currently serves as president of RICHMAC Funding, where he is responsible for establishing and expanding the RICHMAC Funding multifamily lending platform.  He is a former Commissioner of the New York City Department of Housing Preservation and Development (HPD), the nation’s largest municipal housing agency. He has also served as Executive Vice President of the New York City Housing Development Corporation (NYC HDC).  From 2004 through 2008, Mr. Wambua held the position of Senior Policy Advisor for then-New York City Deputy Mayor for Economic Development.  Mr. Wambua coordinated and oversaw a citywide portfolio of economic development agencies, boards, and commissions.  His portfolio also included oversight of all economic development initiatives within the Bronx and upper Manhattan, including large-scale urban planning initiatives and significant public-private commercial real estate development projects. Previously, he was the Vice President for Special Projects at the New York City Economic Development Corporation (EDC) and a Senior Investment Officer for General Electric Capital Commercial Real Estate. “Our company is very proud of Mr. Wambua’s achievements, and also his continued commitment to the advancement of affordable housing and strong community involvement.  This election is extremely important to us as it speaks to the strength and excellence Mr. Wambua brings to our organization, leading the charge into new business opportunities and markets,” says Michael Dury, President of PR Mortgage. Mr. Wambua earned a B.A. from the University of California at Berkeley and a master’s degree in Public Policy from Harvard University’s John F. Kennedy School of Government.  Mr. Wambua has taught real estate finance at New York University’s Graduate School of Public Service, as well as managerial economics at the New School University’s Graduate school of Public Policy. “PR Mortgage, parent company of RICHMAC Funding, is recognized as a premier provider of multifamily, senior, and student housing throughout the country, and I am honored to serve the company and our mission,” said Wambua. “I have the privilege of working each day with some of the best housing professionals in the industry.”

Carmel, INDIANA (05/18/2018) – Carmel, Indiana based PR Mortgage & Investments (PR) is pleased to announce their selection of SS&C Precision LM to support loan servicing and origination for HUD/Ginnie Mae, Fannie Mae, Freddie Mac and its banking programs. SS&C Precision LM will also enhance PR’s asset management and investor reporting, and provide secure web-based portals for borrower self-service and document workflow automation.  PR’s top priority was to find a fully integrated, highly automated loan origination and servicing platform. SS&C Precision LM’s cloud platform offered the flexibility to support PR’s complex loan products including construction, participations, bridge and adjustable rate loans. “SS&C effectively demonstrated its ability to be a strategic partner for PR Mortgage and brings the industry talent and technology expertise we need to transform our agency and FHA lending operations.  SS&C has an impressive track record and a knowledgeable team to implement best practices based on their recent experience onboarding JLL,” said Michael Dury, President & COO of PR Mortgage & Investments. PR Mortgage & Investments is a wholly owned subsidiary of Merchants Bank of Indiana, specializing in multifamily housing and health care facilities finance.  Merchants Bank of Indiana’s holding company, Merchants Bancorp (Nasdaq: MBIN), is a diversified bank holding company headquartered in Carmel, Indiana operating multiple lines of business with a focus on Federal Housing Administration ("FHA") multifamily housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking.  Merchants Bancorp conducts its business through its direct and indirect subsidiaries, Merchants Bank of Indiana, P/R Mortgage and Investment Corp., RICHMAC Funding LLC and Merchants Mortgage, a division of Merchants Bank of Indiana.  PR Mortgage is a premier provider and servicer of multifamily, senior, and student housing. SS&C Technologies is a global provider of investment and financial software-enabled services and software for the global financial services industry. Founded in 1986, SS&C is headquartered in Windsor, Connecticut and has offices around the world. Some 11,000 financial services organizations, from the world’s largest institutions to local firms, manage and account for their investments using SS&C’s products and services.

Carmel, INDIANA (08/15/2017) – Carmel Indiana based PR Mortgage & Investments (PR) is pleased to announce the closing of its acquisition of RICHMAC Funding LLC (RICHMAC), a national Freddie Mac Targeted Affordable Housing Seller/Servicer, Fannie Mae Multifamily Affordable Housing Lender, approved FHA multifamily lender and Ginnie Mae issuer. The seller was an affiliate of The Richman Group. “The RICHMAC platform gives our existing customer base access to Freddie Mac and Fannie Mae, which complements our existing FHA lending platform. Furthermore, RICHMAC and its customers, which include some of the country’s largest apartment owners, will now have support from PR and its parent company, Merchants Bank of Indiana (MBI). MBI will be providing conventional construction and/or bridge loan products that enhance RICHMAC’s permanent loan products. This acquisition solidifies our commitment to affordable housing and gives the MBI family of companies a full array of affordable housing debt products with FHA, Freddie Mac, Fannie Mae, and conventional bank financing.” said Michael Dury, Executive Vice President and COO of PR Mortgage & Investments. RICHMAC will continue to be led by Mathew Wambua and Marsha Goff from offices in New York and Minneapolis. “We welcome Mathew and Marsha and their staff and look forward to working with our existing and new customers in providing expanded and innovative loan products,” added Dury. Beekman Advisors served as strategic advisor to RICHMAC in the transaction and assisted with securing transaction approvals. Wooden & McLaughlin LLP and Ballard Spahr LLP served as legal counsel to PR and RICHMAC, respectively. PR Mortgage & Investments was established in August of 1990 as a mortgage banking firm specializing in multifamily housing and health care facilities finance in the Midwest.  PR is a premier provider and servicer of Multifamily, Senior, and Student Housing. PR is an approved FHA Mortgagee and is an approved Multifamily Accelerated Processing (MAP) lender for HUD. PR is a wholly owned subsidiary of Merchants Bank of Indiana. Merchants Bank of Indiana is headquartered in Carmel Indiana and focuses on several aspects of mortgage lending, agricultural lending, and retail banking services from four Central Indiana locations. Merchants Bank of Indiana has over $3 billion in assets, 165 employees, and more than 100 shareholders. To learn more about Merchants Bank of Indiana, visit www.merchantsbankofindiana.com.